BILLERICA, Mass. - Bruker (NASDAQ:BRKR) Corporation (NASDAQ:BRKR) announced today that the European Unified Patent Court (UPC) has invalidated a patent challenged by 10x Genomics (NASDAQ:TXG), marking a significant legal victory for Bruker's NanoString division in the ongoing intellectual property dispute. The UPC's decision extends a previous ruling by the German Federal Patent Court from May 2024, which had already declared the patent in question invalid within Germany.
The patent, identified as European Patent No. 2794928B1, was asserted against Bruker's CosMx Spatial Molecular Imager (SMI) products. With this latest ruling, the patent has now been invalidated in France and The Netherlands as well, although it is subject to appeal.
Todd Garland, President of Bruker's Spatial Biology division, expressed satisfaction with the outcome, stating, "Today’s ruling marks the third decision of three separate courts in less than a year vindicating our view that the patents being asserted against us by 10x are invalid."
Bruker is also anticipating a UPC hearing on a closely related patent, European Patent 4108782B1, which has been preliminarily deemed likely to be invalid by the UPC Court of Appeal in February 2024. The hearing date has not been set, but a preliminary non-binding opinion issued by the European Patent Office suggests the patent may be considered invalid, with a formal hearing scheduled for March 18, 2025.
These legal developments come amidst Bruker's broader efforts to provide spatial biology solutions and support scientific research. The company, a leader in the post-genomic era, focuses on high-performance instruments and analytical solutions for life sciences, biopharma, and other fields.
The press release also contained a cautionary statement regarding forward-looking statements, advising readers that such statements are not guarantees of future performance and involve risks and uncertainties.
This report is based on a press release statement from Bruker Corporation.
In other recent news, Bruker Corporation reported a significant 17.4% increase in Q2 revenues, totaling $800.7 million, and a 4.5% organic revenue growth for the first half of the year, leading to total revenues of $1.52 billion. The company maintains its full-year guidance of 5% to 7% organic revenue growth. In a strategic move, Bruker acquired Dynamic Biosensors GmbH, a biosensor technology company, and announced the formation of Bruker Spatial Biology, a new division consolidating technologies and services from NanoString Technologies, Canopy Biosciences, and Bruker Spatial Genomics.
Analysts' reactions to these developments have varied. Barclays initiated coverage on Bruker shares with an Overweight rating and a price target of $75.00, citing the company's significant strategic acquisitions. However, Wolfe Research downgraded Bruker shares from Outperform to Peer Perform, due to concerns about the company's financial outlook and the pace of improvement in demand for its instruments. Meanwhile, Citi and TD Cowen reiterated their Buy and Hold ratings respectively. These are recent developments in Bruker Corporation.
InvestingPro Insights
Bruker Corporation's recent legal victory in the European Unified Patent Court aligns with its strong market position and financial performance. According to InvestingPro data, Bruker boasts a market capitalization of $9.27 billion, reflecting its significant presence in the life sciences and analytical instruments sector.
The company's revenue growth is particularly noteworthy, with a 14.93% increase over the last twelve months and a robust 17.42% quarterly growth as of Q2 2024. This growth trajectory supports Bruker's ability to invest in legal battles and innovative technologies like the CosMx Spatial Molecular Imager products mentioned in the article.
InvestingPro Tips highlight that Bruker has been profitable over the last twelve months, with analysts predicting continued profitability this year. This financial stability is crucial for the company as it navigates complex patent disputes and invests in research and development.
However, investors should note that Bruker is trading at a high P/E ratio relative to its near-term earnings growth, with a P/E ratio of 28.55 and a PEG ratio of 2.51 for the last twelve months as of Q2 2024. This suggests that the stock may be priced at a premium, possibly reflecting market confidence in the company's long-term prospects and its ability to defend its intellectual property.
For those interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insight into Bruker's financial health and market position. There are 5 more InvestingPro Tips available for Bruker, which could be valuable for investors looking to make informed decisions in light of the company's ongoing legal and technological developments.
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